Seeking Alpha
  • Paulo Santos
    Chian down, copper down, AAPL and AMZN keeping tech together, for how long?
    3/28/12
    Reply (14)
    • Paulo Santos: Given how much calls traded yesterday, it would seem that AAPL at the present levels is being supported by highly speculative demand.
      3/28/12
    • OneLongTrade: Seems like that has always been the case in these names. The current speculation is like no other though. Sheer gambling in the weeklies.
      3/28/12
    • Paulo Santos: I'd hazard that if AAPL falls $3, it will then fall a lot more, fast, because of all the weekly gamblers.
      3/28/12
    • Paulo Santos: AMZN seems done, so it's only AAPL supporting the whole edifice.
      3/28/12
    • vorgriff: Every pullback on Steel companies shares, I recall your articles that helped me to realize the actual situation. Thanks Paulo!
      3/28/12
    • Paulo Santos: Still, steel is less clear than iron ore or copper - bear that in mind. Not only are the market caps much smaller, but also ...
      3/28/12
    • Paulo Santos: ... where iron ore and copper are world markets, steel is a bit more local. And if NG and iron ore go down, some steel companies
      3/28/12
    • Paulo Santos: might benefit a little - which makes it less clear than iron ore or copper, where it's all negative.
      3/28/12
    • Paulo Santos: Though obvious a bad situation for steel production in China is bound to produce a steel deluge around the world and losses for everybody
      3/28/12
    • Paulo Santos: (obviously)
      3/28/12
    • vorgriff: Yeah, I got your outlook! I was misunderstaning the hole situation. Especially the possiblity of China flooding some basic materials markets
      3/28/12
    • Paulo Santos: Yes, as I said at the start, in a normal situation, ignoring China, it would be a good timing to buy into those exact same sectors.
      3/28/12
    • Paulo Santos: However, we can't really ignore China when it represents 1/2 the entire market for all of those materials and will do poorly right away
      3/28/12
    • vorgriff: with its overstock. I learn a lot from your writing. Thanks again!
      3/28/12